Housing continues to be the main concern for Spanish citizens, according to the CIS. In Elche, this reality is evident with a year-on-year increase in housing purchase prices of 17.5% in the second quarter of the year, according to reports from the appraisal company Tinsa.
Since 2023, price tension has been noticeable. Initially, the increase in mortgage interest rates led many to mortgage instead of rent, as rental prices were already high. Today, despite the drop in interest rates, purchase prices for both new and second-hand housing are high, and rents continue to have high demand.
This situation has driven the phenomenon of apartments in commercial ground floors, considered a 'lesser evil' with more moderate prices than apartments on upper floors. The year-on-year variation of 17.5% is the second highest in the Valencian Community, surpassed only by Torrevieja.
The value per square meter in Elche stood at €1,599/m2 in the second half of the year, making it the fifth most expensive city in the region, behind Benidorm, Valencia, Alicante, and Orihuela. Compared to the first quarter, the increase is 3%.
Tinsa's study also analyzes the theoretical annual effort ratio, which simulates the percentage of disposable income that an average household would allocate to the first mortgage payment. In Elche, this rate has increased to 35.7%, exceeding the threshold considered 'reasonable'.
This increase in effort is due to the growth in prices, mortgage costs, and the loss of purchasing power due to inflation. A previous Tinsa report from 2024 already indicated that Elche was close to exceeding this 'reasonable' rate.
The average income in Elche is among the lowest in the province, and there is a duality within the municipality, with greater wealth concentrated in the rural districts and areas compared to the urban neighborhoods.
